Discussion in 'Colorado Basketball Message Board' started by DBT, Jan 16, 2011.
Kind of related to this question (I have no answers for you DBT, except that it can only be good), I have another question for this year.
Do teams that get invited to the NCAA tournament make money?
Do teams that host an NIT game get to keep the ticket sales? Essentially, would CU make more money hosting an NIT game or two than going to the big dance?
Here is a link ( dated 3-10 ) from CNN Money that show revenue dollars for all Division 1 BB programs.
CU made close to $4 million in revenue and made $42K in profit after expenses.... that number surprised me as I have always assumed the BB program lost money.
how the hell does duke lost $2 million every year in mens basketball.
They're still paying Laetner's father.
To an extent the profit/loss figure in the story are meaningless given that the schools are free to play loose in how they calculate this figure and what gets charged against the revenues. Even with that some interesting information in the story. Ohio State, Texas, Syracuse made a bunch of money as did a lot of SEC schools. A number of basketball only schools did well as would be somewhat expected.
On the other side a lot of smaller schools losing big money, I wonder how much of this is due to expensing other sports against basketball. One of the biggest losers was CSU.
From a CU standpoint the increased interest and attendance has to be helping. When we have 11,000 in the building instead of 4,000-6,000 for an Okie State that has to make a big difference.
One question that I have not heard talked about. We lose a bunch in conference distributions in football because of the conference switch, does the same hold true for basketball? If so, how much? If (when) we make the tourney this year, do we lose part of our tourney share?
Also what is the difference in salary for Boyle vs. Buzz? Is it enough to make a difference.
I believe that since we negotiated a hard figure for our exit penalty based on a percentage of our normal distribution, that we'd make up some ground by getting on tv more in basketball as the season progresses and by getting an NCAA tourney split.
I think the bigger impact on CU AD finances, though, would come from the money fans spend and the increased sponsor revenue we'll get if it's a hot product and a good place for Colorado businesses to advertise.
The men's team did lose a little money in 09-10, but basketball as a whole (men's/womens's) loses a lot of money. For the financial future of the Buff's it would be great if the combination of revenue for men's b-ball, women's b-ball, and women's volley ball equaled total expenses. Right now there is about a $4 million gap that would need to be closed.
Revenue expense figures for the program is at:
Mbball - $ 3,811,877
Wbball - $ 2,984,499
wvball - $ 1,155,015
Total - $ 7,951,391
Mbball - $ 3,587,371
Wbball - $ 387,691
wvball - $ 136,431
Total - $ 4,111,493
Considering Kansas is normally in the top 4 in the Big 12 for league payout, Basketball TV appearances will help add revenue beyond what the AD was expecting. Also, by raising the ticket prices for just the KU game, rather than having KU fans buy a 3 game pack will help in the end as well. The AD will still get the same amount of revenue, and if the Buff's do well they will be able to sell the tickets to other games as well.
It wouldn't surpise me if each sell out adds $100k in revenue compared to last year.
Lets say that each seat costs $20 and they add an extra 2,000 fans per game per sellout. That is only $40,000 in ticket sales per game (this is based on the increase in attendance between the Mizzou game and OSU). I don't think that they add $60,000 by selling coke and popcorn. I think we are looking at more like $50k per sellout (excluding Kansas) but with 7 games, this is a decent chunk of change.
Maybe I was looking at the wrong info, but I thought I found something saying we averaged roughly 7,500 in attendance last year. There were 2 sellouts(KU & KSU), so I made the assumption that the other home games probably averaged around 7,000 per game. That is how I came up with the $100k figure for each sellout vs last year.
Early games have ~2-3k, KU is almost a sell out every year, normal conference play gets ~8-9k
i'd say over the last decade that's closer to 7k avg.
I believe the 7k average is for the year, so 8 or 9k in conference, 2 or 3k normal OOC, sell out for KU, and 8 or 9k at 1 or 2 non-conference, gets you a yearly average of 7k
i think 9k avg in conference is way too much. all i'm saying. i've been to a lot of those games and i don't see roughly 80+% of capacity as an avg.
Our attendance last season ranked 86th in the nation.
We averaged 6,267 for our 16 home games. Considering our normal non-conference attendance, I'd think we had to be over 8k for B12 games in order to hit that figure. Kind of surprises me, though.
good point. I guess I was using the Mizzou game as my baseline and we should be using the attendance from the past X years since it would be more accurate.
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